Mentioning LC no. and modification of UCP

[berry]

someone please help me on one thing. UCP600 says that any rule can be modified. now when the LC expressly require that all document must quote LC no, then why it is said that this clause is not a basis for rejection?

[iLC]

you are right in saying that UCP 600 allows any modification or exclusion. but there is something you are missing. UCP600 clauses or their modification are for a purpose. UCP600 14f offers a touch to that. now coming back to your question. why missing letter of credit no. on the shipping document is not a discrepancy. because the purpose of letter of credit no. on the shipping document is to identify that a presentation is under a particular letter of credit. if you can identify a document as a part of presentation made under a particular letter of credit, then there is no requirement for that particular clause. and if you can not find out under which credit a presentation is made, then how can you raise a discrepancy? :?:

[shruti]

though late in replying, but found interesting.
An complying presentation means
1. complying to credit 2. agreement with rules 3. according to ISBP.
if credit requires " drawn under credit number xxxxx issued by xxxxx bank, xxxxx branch, country"
missing such words will make it valid discrepancy.
Article 14f of UCP may not be able to rescue, as credit is specifying one component of data content of documents.

regards
n k k

[ghubshawi]

Dear Friend,

As you know a UCP is not a legal regime that authomatically applicable to LCs, rather it is a set of commercial rules agreed between parties there to.
So, one should be precised when claiming modifications or, exclusions, however, this can be achieved by considering the following;
1- make sure that the exclusion of a certian article is mentioned in your LC.
2- that the modification is precisely carried out.
3- mere mentioning of a clause in your LC in contradiction of UCP is not consider to be a modification or, exclusion unless you specify that in your LC.
4- be more precised about words using in LC to modify or, exclude something e.g " any document not containing our LC no is discrepant".

I hope this helps out.

Brgds,

Ghubshawi

[jmitra]

though i agree with the overall conclusion of ghubshawi, im not sure i can agree with all of that especially point 3 and 4. if a clause in the credit is in contradiction with the UCP600, then the clause of that letter of credit will stand. there will be no requirement to mention the purpose of that conflicting clause; modification of UCP.

about point 4, apparently i agree with you but im very much sure. breach of such clause may roll a ball of controversy.